Export Enterprises Do Not Receive Long Bills And Are Afraid To Accept Euros.

Expert:

The European Union is China's largest export destination. Recently, the debt crisis in some euro zone countries has led to the euro's currency decline. In May 17th, the euro reached a 4 year low against the dollar. On that day, the yuan hit a high of 8.3666 yuan against the euro.

It is estimated that since 2010, the depreciation rate of the euro against the RMB has exceeded 13%, and the euro is expected to hit 1.12 lows against the US dollar in the next 3 months, which will undoubtedly increase the risk of exchange rate losses to Chinese exporters.

Exporters: avoiding currency settlement to avoid exchange rate risk

Reporters yesterday visited the Pearl River Delta and other places.

Chen Lang, chairman of Guangdong Ming Liang daily necessities manufactory, told reporters that the company would charge three to 50% of the order amount for the customers with different orders. After the shipment, the Guarantee Corporation was entrusted to recover the full amount in time to ensure cash flow and avoid the fluctuation of exchange rate as far as possible.

For the use of financial instruments to avoid exchange rate risks, Chen Lang said that the operation of financial instruments is not ideal.

At the beginning of the year, some foreign trade enterprises would exchange rate hedging for some orders against the US dollar at 1.45. However, when the euro drops to 1.12 lows, the risk reduction ability of hedging products has been reduced.

Feng Jin, director of Guangdong Dongxing electromechanical plant, told reporters that even if the euro fluctuated sharply, even the risk of hedging products was very high.

Since 2010, the euro has already fluctuated more than 10% against the RMB exchange rate.

Even if companies adopt hedging products, foreign exchange losses will seriously reduce corporate profits.

Therefore, the most direct way for foreign trade enterprises is to avoid settlement in euros and settle in US dollars.

At the same time, many suppliers have agreed with the European Union buyers that when the RMB exchange rate fluctuates more than 5%, the buyers and sellers need to renegotiate the price.

At present, some small and medium-sized foreign trade enterprises are reluctant to accept the EU's long-term orders.

"Now European customers are asking us to cut prices, or we can hardly negotiate business from new bargaining."

Panyu Hongfa

European buyers: the consumer market will rebound at least in the second half of the year.

The recent Greek debt crisis has triggered short-term fluctuations in the euro, which has seriously affected market confidence.

Many large European sourcing groups have admitted that they need to lock in the exchange rate risk and resign the bill with buyers if necessary.

Fourchet, general manager of purchasing group PPR, Greater China, France's largest home appliance group, said that the debt crisis in Greece and Portugal has greatly increased the recovery of the euro area.

The current consumer market in the euro area is "not very optimistic".

Fourchet conservatively estimates that in the first half of 2010, the consumption market for household goods in France will still shrink by 5% to 10% before the 2008 financial crisis.

French Fourchet predicts that the main euro area markets, like France and Spain, will not change until the second half of 2010.

At the same time, Fourchet believes that China's emerging market performance is very eye-catching, and the rapid recovery of emerging markets, in turn, has led to the growth of multinational companies in Europe and other places, giving more confidence to local economic development.

International economic experts: exports to Europe are expected to decrease by 5% in the fourth quarter.

With regard to the impact of the euro zone debt crisis on China's export enterprises, experts believe that the euro dollar exchange rate will continue to oscillate in the near future, and there is a big uncertainty about the pricing and settlement of Chinese export enterprises.

At the same time, EU enterprises will expand exports with the help of weaker euro.

EU's trade protection measures against China may also escalate.

Chinese enterprises should adopt effective ways to prevent or stabilize export trade risks to the euro area.

"The euro zone's overall economic recovery will have to wait for at least two years, and the aftermath of the debt crisis of the central and southern European countries will continue to affect market confidence in the near future."

Shen Jianguang, an economist who worked in the European Central Bank, told our correspondent.

Shen Jianguang believes that although the European Central Bank and the International Monetary Fund IMF have reached a helping hand to Greece, the current "750 billion euros" aid "blood pfusion" stimulus effect can not be achieved in one step, the euro zone economic recovery will be full of variables.

As a result, the euro exchange rate continues to oscillate.

According to the latest forecast of Credit Suisse of investment bank, the euro will reach a low level against the US dollar in the next 3 months.

Meanwhile, the weaker euro will remain for about two years.

The European Central Bank will also maintain its current low interest rate easing monetary policy to increase market liquidity.

Euro zone countries have also introduced fiscal tightening measures to reduce government deficits.

Chen Fengying, director of the Institute of world economics, China Institute of modern international relations, said that the surge in foreign trade in the first quarter of 2010 was mainly due to the resumption of stock replenishment in the US and other export markets.

Li Gang, director of the Asia Europe cooperation research center of the Ministry of Commerce's international economic cooperation research, told reporters that the recovery process in Europe will be a long period adjustment process.

China's export growth to the EU will decline.

Experts predict that the current debt crisis in Greece and other countries will have a lagging response period to China's trade volume in the euro area. It is estimated that in the fourth quarter, China's exports to the euro will be about 5% lower than that of the euro area.